
Ondo Finance Seeks SEC Approval for Tokenized Securities on Ethereum
Ondo Finance has submitted a no-action request to the U.S. Securities and Exchange Commission seeking approval to issue tokenized securities on the Ethereum network. Under this proposed model, underlying equities would be held via the Depository Trust Company through broker-dealer Alpaca, while Ondo issues tokens to represent corresponding securities entitlements. This structure aims to utilize on-chain tokens for collateral management and record-keeping, effectively bridging traditional off-chain holdings with blockchain-based administration. The request specifically asks the SEC to confirm that this operational framework does not necessitate broker-dealer registration for the firm. This move is significant as it reflects a broader industry push for regulatory clarity, occurring alongside similar initiatives from major players like the New York Stock Exchange, Robinhood, and Coinbase. With the tokenized real-world asset market currently valued at approximately $23 billion, and Ondo contributing roughly $2.8 billion, such regulatory developments are critical for the sector's projected growth to trillions of dollars by 2030. While the SEC has not yet responded, the filing highlights the ongoing evolution of legal frameworks necessary to integrate traditional financial products into decentralized infrastructure.




